You might look at the new banking App on your phone and be impressed at the movement in technology in recent times, even within your own home accounting. But what is not immediately visible is the impact that FinTech (Financial Technology) is having in the Banking and Finance Sector as a whole.
Jean Chalopin of Deltec International group, said: “It is a change that is been a ‘work in progress’ for decades and not only that, but the rate of change has been getting faster, with even more sweeping, dramatic updates – but that is what technology does, right?”
So, what has been going on in with FinTech in banking and finance? Well, that is what we are here to tell you because you are probably aware of lots of these changes … without realizing you know about them. We will explain as we dive into some insightful detail…
Big Data Has Become Connected Data
By that we mean the whole idea of data is not just something that holds and stores information, it’s now become accessible by almost every medium of banking and finance – all at the same time. Data centers can now deliver an enormous output of information based on a single inquiry.
That Loan you Applied For?
For example, we used to submit a loan application on paper, and if we were lucky, the bank would call us a week later to tell us the results. But now, in almost an instant, a loan application can be accepted or declined because of information stored in a data centers, even on an application made over the internet. Indeed, you likely knew this, but you just haven’t noticed the subtle, yet sweeping change, or the impact its had on speed, efficiency, and customer convenience.
In fact, the truth is that decision was already predestined before you even made the application, based on what ‘the big data’ already knew about you. From your online subscriptions, bill payments, credit card track record, previous loans, mortgage status and so on. We have entered the realms of advanced analytics and interconnectedness … you perhaps just did not realize the magnitude of it or the implications.
Not only that but those loan applications will now likely be handled by more than just your bank, there are connected schemes for Business Investing, Peer-to-Peer Lending, International Banks and Finance houses … and each of those with their own multiple layers of lending platforms and packages, all plugged into and accessible via ‘big data’, it’s enough to blow your mind!
Mobile Payments Overtake Cash
According to a report conducted in the UK, 13.2 billion debit card payments were made in the last year, that represents a rise of around 14% on the previous year, according to banking trade body UK Finance.
That is greater than the 13.1 billion cash payments made in the same year, the use of notes and coins has dropped by about 15%. You maybe did not notice that.
An estimated 3.4 million people barely used cash at all during the year. Ask any millennial to make a payment and cash will often be the last method they offer!
Fintech is changing the way in which Banks and the Finance industry operate, sometimes it just appears seamless, so seamless that you may just take it in your stride. We know all this because it is our business to know and keep track of these sweeping changes.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.